How To: Avoid Identity Theft

how are stolen identities used?

Changing your address: The idea here is that thieves often complete the change of address forms so that you won't have access to your mail for a while. This way, you won't be privy to what's happening in your name, such as the new bills being charged to you without your knowledge. By the time you do suspect something, they will have probably moved on to someone else.

Opening new credit cards: Using your name, home address, date of birth, and Social Security number, criminals could order a brand spanking new credit card. Of course, they have no intention of paying the bills and the bad credit is reported to your name.

Getting phone lines: Telecommunications are a big business nowadays and there's a lot of money to be made in reselling airtime. With your personal information, they can sign up for phone, wireless, and Internet services without bothering to pay.

Filing for bankruptcy: When they've taken your name as far as it can go and have accumulated all the debts they could amass, they file for bankruptcy under your name.

Counterfeiting checks: With some minor technical knowledge, criminals can forge checks or debit cards and use them to drain your bank accounts.

Buying cars: Most car dealerships live for the sale, so when someone is interested in a purchase and presents the right information, car salesmen might be ready to make the deal. Criminals can thus buy, lease, or obtain car loans in your name.

how to reduce risk

Before we go any further, let's get one thing straight: There is no foolproof way of protecting your identity. Clever criminals will always find a way to break through your defenses if they absolutely need to. But following these tips will certainly decrease your chances of becoming one of their victims.

Check your credit report At least once a year, order a copy of your credit report from each of the three national credit bureaus: Equifax, Experian and TransUnion (this can even be done online). Check to make sure all the transactions are accurate.